FNQ mines emerge as demand for high-grade bauxite strengthens
Hayden Smith, The Cairns Post
July 26, 2017 3:00am
Subscriber only
CAPE York’s mining scene is undergoing a major transformation amid growing international demand for high-quality bauxite.
While Rio Tinto’s $2.6 billion Amrun project is by far the most notable development, several smaller bauxite operations near Weipa are also taking shape.
Remote areas like Mapoon are tipped to benefit from Metro Mining’s Bauxite Hills Mine, about 95km north of Weipa, which is scheduled to begin production after the 2017/18 wet season.
The ASX-listed company has struck a deal with Chinese aluminium company Xinfa, which will buy about seven million tonnes of bauxite over the project’s first four years.
When fully operational, the Bauxite Hills Mine will have about 200 employees.
“We’re starting to see a lot of announcements for new alumina refineries in China, all of which rely on imported bauxite,” said Metro managing director Simon Finnis.
“We will draw employees out of places like Injinoo, Mapoon and Weipa, and those places will benefit from having salaries rolling through the town.”
He expected demand for bauxite to double over the next decade.
Another “boutique” mine just southwest of Weipa, Urquhart Bauxite, is expected to begin production in coming months.
Metallica Minerals, also a listed company, will ship bauxite to Asian markets from the nearby Hey Point facility.
But much of the local talk has centred on Amrun, between Weipa and Aurukun, which will herald a new era in Rio Tinto’s historic Cape York mining activities.
The resource giant’s existing East Weipa mine is drawing to a close.
“There are going to be some changes, mainly because the actual (Amrun) mine site will be further and further from Weipa,” said Weipa Town Authority chairman Michael Rowland.
“But Amrun virtually takes Weipa to the next stage … there’s about another 50 years of mining in that area alone, without even looking at more mining leases to the north.”
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